PML-N govt responsible for latest increase in tariff of electricity: Umar Ayub

• Umar Ayub says previous government is responsible for increase in electricity tariff.
• Umar Ayub says PML-N government did not increase tariff for 18 months before the election.
• Umar Ayub says PML-N government did not timely increase power tariff amounting to Rs 226 billion as it wanted to get votes in the elections.

ISLAMABAD: Minister for Power Umar Ayub Khan Thursday said the previous government of Pakistan Muslim League Nawaz (PML-N) was responsible for the latest increase in electricity tariff as it signed expensive power purchase agreements with private companies.

Addressing a press conference here, he said the PML-N government did not increase tariff for 18 months before the election.

The PML-N government did not timely increase power tariff amounting to Rs 226 billion as it wanted to get votes in the elections, adding now the nation was suffering due to wrong policies of PML-N.

“I repeatedly said in the National Assembly, Senate, Standing Committees and media that PML-N was responsible for the tariff hikes.”

He said the Economic Coordination Committee of the Cabinet had approved the power tariff  increase of Rs 0.30 per unit and federal cabinet would ratify it in its meeting.

Umar said the tariff increase would not have any financial impact on those 75 percent of consumers who use less than 300 units of electricity per month.

He said the National Electric Power Regulatory Authority (NEPRA) in total increased the electricity tariff by Rs 0.83 per unit to pay six month capacity charges of thermal, coal and LNG power plants and due to hike in interest rates and change in value of dollar against the rupee.

The tariff increase was changed from Rs 0.53 unit  to Rs 0.83 unit to shift the burden to well to do consumers and shield the consumers who use less than 300 units in line with the instructions of Prime Minister Imran Khan who always stressed that relief should be provided to the working class and poor people.

The minister said the government was trying to reduce the circular debt. During the PML-N government the circular debt was rising by Rs 38 billion per month. The government of Pakistan Tehreek I Insaf (PTI) reduced the circular debt to Rs 10-12 billion per month, he informed.

Umar said the Power Ministry saved Rs 84 billion by improving efficiency in the power sector and stopping electricity theft.

Rs 25 billion would be spent on distribution and transmission system and buying of meters and transformers, he added.

The government was making efforts to reduce the rate of electricity, he said adding the main plank of the new energy policy was the increase in  generation of renewal energy which would bring down the rates.

He said the prime minister was stressing on ease of doing business as it would create new business opportunities for investors.

The investors were lining up to invest in power and petroleum sector, he said adding Saudi Arabia would invest $ four billion to build a 500 megawatt power plant.

To a question, he said NEPRA was an independent regulator and was working according to law and not facing pressure from anybody.

To another question, the minister said recoveries were made from everybody involved in theft irrespective of their background. First Information Reports were registered against influential people on the instructions of the Prime Minister for stealing electricity.

The power theft was done by ‘kunda’ and tempering of meters, he added.

Federal Secretary Irfan Ali said the campaign for recoveries would continue across the board, adding the recoveries had helped in putting less burden on the consumers.